New York-based middle market PE firm Sentinel Capital Partners will acquire WellSpring Pharmaceutical Corp., a maker of specialty prescription and over the counter drugs. Ancor Capital Partners joined the PE firm in the deal.
Sentinel Capital Partners Acquires WellSpring Pharmaceutical Corporation
Sentinel Adds to Healthcare Portfolio
NEW YORK, November 7, 2011 – Sentinel Capital Partners, a private equity firm that invests in promising lower middle market companies, today announced its acquisition of WellSpring Pharmaceutical Corporation, a North American manufacturer and marketer of specialty prescription and over-the-counter pharmaceuticals. Sentinel completed the transaction alongside Ancor Capital Partners, an independent sponsor with extensive healthcare expertise.
WellSpring’s prescription drugs and OTC brands have widespread distribution through pharmaceutical distributors, wholesalers, and major food and drug retailers. WellSpring prides itself on providing highly effective prescription medications in much-needed applications for niche patient groups. WellSpring also manufactures pharmaceuticals for other drug companies on a contract basis from its production facility in Ontario, Canada.
“WellSpring is an innovator that provides quality pharmaceutical products and related services across a diverse set of end markets. The opportunity to invest alongside Ancor was also a strong incentive for us,” stated Eric D. Bommer, Partner at Sentinel. “We believe WellSpring is well positioned to accelerate its growth and we look forward to working with its management team and Ancor in taking WellSpring to the next level.”
“WellSpring is Ancor’s fifteenth acquisition of a healthcare company and combines our experience in pharmaceutical sales, OTC products, and contract manufacturing,” said J. Randall Keene, Managing Partner at Ancor Capital Partners, who will serve as CEO of WellSpring. “We are very pleased to have teamed with Sentinel on this acquisition and we look forward to working closely with them,” added Mr. Keene.
Dr. Robert A. Vukovich, founder and CEO of WellSpring, reinvested in the company and will serve on its board of directors. Dr. Vukovich commented, “I am pleased to have found a buyer who will continue the high quality standards that Wellspring established, and feel I have passed the company into very capable hands that will continue to accelerate growth.” Ms. Bonnie Feeney, President and COO of Wellspring Pharmaceutical Canada Corporation, and Ms. Wendy Shusko, COO and CFO of Wellspring Pharmaceutical Corporation USA, also reinvested in WellSpring and will continue in their current positions.
Sentinel’s investment in WellSpring continues its focus on healthcare. In September 2011, Sentinel acquired National Spine & Pain Centers, a leading provider of management services to physicians specializing in interventional pain management procedures. Other current Sentinel healthcare holdings include Massage Envy, the nation’s largest provider of therapeutic massage services, and Interim Healthcare, one of the nation’s largest providers of home nursing care. Sentinel successfully exited two healthcare investments in 2010, ReachOut Healthcare America, the nation’s leader in mobile dental services, and Strategic Partners, a leading provider of medical uniforms. Sentinel previously sold Metro Dentalcare, a regional multi-specialty dental group, to American Dental Partners (NASDAQ:ADPI) in 2007, and Castle Dental Centers, a leading regional dental services provider, to Bright Now! Dental in 2004.
The Wellspring transaction continues Sentinel’s successful record of partnering with independent sponsors. Sentinel’s 2009 investment in Massage Envy and 2011 investment in Critical Solutions were also made together with independent sponsors, each of whom offered invaluable assistance before the closings and continue to add value.
About Sentinel Capital Partners
Sentinel Capital Partners specializes in buying and building lower middle market companies in the United States and Canada in partnership with management. Sentinel targets eight industry sectors—aerospace/defense, business services, consumer products/services, distribution, food/restaurants, franchising, healthcare products/services, and industrial manufacturing. Sentinel invests in management buyouts, purchases of family businesses, corporate divestitures, and going-private transactions of established businesses with EBITDA between $7 million and $35 million. For more information about Sentinel, visit www.sentinelpartners.com.
About Ancor Capital Partners
Ancor Capital Partners, based in Fort Worth, Texas, is an operations-oriented private equity firm focused on lower middle-market manufacturing and distribution companies with EBITDA of $5-$15 million. Extensive operational experience gives the Ancor team a unique understanding of the critical business issues faced by lower middle-market companies. Ancor’s proven record includes 27 acquisitions to date in the healthcare, consumer and other industries.
About WellSpring Pharmaceutical Corporation
WellSpring Pharmaceutical Corporation, a privately-held company headquartered in Sarasota, Florida, manufactures and distributes prescription drugs and OTC brands through pharmaceutical distributors, wholesalers, and major food and drug retailers. WellSpring also manufactures pharmaceuticals for other drug companies on a contract basis in its production facility in Ontario, Canada. For more information about WellSpring, visit www.wellspringpharm.com.